Extending the digital media remit of the Advertising

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Extending the digital media remit of the Advertising Standards Authority (ASA)
Q&A
Q. What is the Advertising Standards Authority (ASA)?
A. The ASA regulates advertising content in the UK. It covers broadcast, print, radio,
outdoor, cinema and digital media. The advertising code for non-broadcast media is
written and agreed by the industry (including the IAB) but the ASA independently
administers and enforces the rules set out in the code.
The self-regulatory rules complement existing law for advertising and fill in any
necessary gaps. The system also offers a faster, cheaper and more effective solution to
issues than statutory legislation / regulation. For further information on the ASA visit
www.asa.org.uk.
Q. So what exactly is happening?
A. The ASA is extending its existing self-regulatory rules for digital media to cover:
 advertisers’ own marketing communications on their own websites; and
 advertiser controlled marketing communications in other non-paid for space.
The IAB and some of its members have worked with the rest of the advertising industry
on the planned remit extension and fully support this. A copy of the ASA’s media
release can be found at http://asa.org.uk/Media-Centre.aspx.
Q. What are the details?
A. The ASA has published an implementation plan that outlines further details on the
extended digital media remit. This is open for comments and feedback and you can
download the implementation plan at http://asa.org.uk/Media-Centre.aspx.
From 1 March 2011, the existing self-regulatory rules (known as the British Code of
Advertising, Sales Promotion and Direct Marketing or the ‘CAP Code’) will apply to:
Advertisements and other marketing communications by or from companies,
organisations or sole traders on their own websites, or in other non-paid-for space
online under their control, that are directly connected with the supply or transfer of
goods, services, opportunities and gifts, or which consist of direct solicitations of
donations as part of their own fund-raising activities.
1  Extending the digital media remit of the Advertising Standards Authority (ASA): IAB Q&A
Q. Does the extended digital media remit include social media?
A. Yes. Marketing communications on advertiser-controlled ‘pages’ on social networking
sites, such as Facebook, MySpace and Twitter, will come within the extended remit.
User-generated content (UGC) will not fall within the extended remit unless it is
incorporated – solicited or unsolicited – into an advertiser’s marketing communication.
For example, only the advertiser’s marketing communication on a social networking
page will come within the extended remit.
The extended digital media remit will also cover advertiser-controlled advergames used
to promote a product or service. Advergames, when part of a paid-for advertisement,
are already within the ASA’s existing remit (see below).
Q. What is not covered?
A. The ASA’s digital media remit will not be extended to the following:
 All the existing exemptions from the ASA’s current remit. For example, editorial
content, ‘natural’ search engine listings and press releases and other PR material.
 Investor relations and ‘heritage advertising’ (eg previous ‘iconic’ brand campaigns).
These are new exclusions.
Q. What areas of digital media does the ASA already regulate?
A. The self-regulatory rules that govern digital marketing (the ‘CAP Code’) recently
underwent a fundamental review and the latest version can be found at
www.cap.org.uk/The-Codes/New-Advertising-Codes.aspx.
The ASA’s existing remit covers all digital marketing in paid-for space. This includes the
following:
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PPC search marketing.
Display ads – banners, skyscrapers, MPUs, home page takeovers as well as video
(pre-roll etc.).
Commercial classified advertisements.
Email marketing.
Mobile marketing – SMS, MMS.
In-game advertising.
Advergames – as part of a paid-for advertisement.
Viral and engagement marketing.
Sales promotions (even in non-paid for space).
The
IAB
has
a
short
guide
to
these
existing
regulations
at
www.iabuk.net/en/1/thebuzzonregulation.html. This will soon be updated to cover the
extended digital media remit.
2  Extending the digital media remit of the Advertising Standards Authority (ASA): IAB Q&A
Q. Why is this happening? Is it necessary? What does it mean for the digital
marketing sector?
A. The existing self-regulatory rules are being extended in light of the growing level and
changing nature of marketing in the digital space. Self-regulation must keep pace with
changing technology and innovative commercial practices.
The extended remit therefore seeks to enhance consumer (especially children), industry
and political trust and confidence in digital media thereby protecting and enhancing
business rather than seeking to restrict it. It will reinforce the integrity of digital
marketing ensuring that practitioners and brands communicate in an ethical way.
The IAB believes the ASA is the most effective body to handle this. It is the ‘one stop
shop’ for consumer complaints and is widely recognised as one of the best and most
efficient regulators in the UK.
Q. Isn’t this old news?
A. The advertising industry announced its intention – in principle - to extend the ASA’s
digital media remit back in March. See the IAB’s news story at
www.iabuk.net/en/1/adindustrytoextendselfregulatoryremit.mxs. However, the detail of
how this would work in practice still needed to be discussed and agreed by the
Committee for Advertising Practice (CAP), the industry body that writes the selfregulatory rules. The IAB is represented on CAP.
Q. When does this extended remit go live and become enforceable?
A. The extended remit will go live on 1 March 2011. This gives the ASA six months to raise
awareness of the extended remit amongst the general public (see below) and for
marketers to be get comfortable with it.
Q. Wasn’t it all going to go live this autumn?
A. No. In an ideal world it would have made sense for the
force when the revised existing rules come into force (on
is a major step for advertising and the internet which
everyone doing business online. There needs to be
awareness and therefore long-term compliance.
extended remit to come into
1 September). However, this
will potentially impact upon
a period of grace to raise
Q. Surely this means more work for the ASA. How will it be paid for?
A. The ASA and the self-regulatory system are advertiser-funded: that means that
advertisers themselves foot the bill. This is currently achieved via a 0.1% levy on ad
spend collected at the agency level. To meet the expected additional costs, this levy is
to be applied to PPC search marketing, mobile marketing and affiliate marketing (none
of which was previously levied). Google has also agreed to supplement this.
The Advertising Standards Board of Finance (Asbof), the body that collects the levy,
has a guide to the levy collection system at www.asbof.co.uk.
3  Extending the digital media remit of the Advertising Standards Authority (ASA): IAB Q&A
The ASA has recently undergone a major review of how it works, including its operating
costs and head count, to ensure it delivers value for money, particularly in the current
economic climate.
Q. How will the ASA enforce this extended remit?
A. In the event of non-compliance, the ASA’s existing sanctions for paid-for digital media –
such as publishing its adjudications - will continue to apply. There are some additional
ones for the extended remit. These are:
 Providing details of an advertiser and its non-compliant marketing communication
on a new ASA microsite.
 With the co-operation of the search engines, removing paid-for search ads that link
directly to the page hosting the non-compliant marketing communication.
 Buying search ads that highlight the continued non-compliance. This will link to the
ASA’s microsite.
The ASA tries to avoid sanctions and the Committee for Advertising Practice (CAP)
works to maintain high standards. CAP offers training and advice as well as copy
advice at http://copyadvice.co.uk/.
Q. Is there any kind of review?
A. Yes. Anyone can comment at any time on the extended digital media remit via
codepolicy@cap.org.uk. However, there will be formal quarterly reviews and a
comprehensive review in Q2 2013 (two years after the extended remit comes into force).
Q. Is the ASA doing anything to raise awareness of this extended remit?
A. Yes. The ASA will be running a media campaign in 2011 to make the general public
aware of the extended remit. IAB members will be helping with this.
Q. What is the IAB doing to support this?
A. IAB media owner members will help the ASA with its consumer campaign. Separately
the IAB is working with Asbof to raise awareness of the levy within smaller and niche
players within the search, mobile and affiliate marketing sectors.
Between now and the 1 March 2011 (when the extended remit goes live) the IAB will
also be raising awareness amongst the broader digital marketing sector. Further details
on this will follow.
For further information please contact Nick Stringer, IAB director of regulatory affairs, on 07957 691803 or at nick@iabuk.net
4  Extending the digital media remit of the Advertising Standards Authority (ASA): IAB Q&A
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